Best Small Business Loans For Veterans

Get Started With SmartBiz

Total Rating	4.7
Rates & Fees4.8 Pricing 5.0 Affordability 4.5
Services4.8
Eligibility Requirements4.8
Application4.5
Sales & Advertising Transparency4.9 Sales Practices 5.0 Web Presence 4.7
Customer Service4.9
User Reviews3.5

Pros

Faster turnaround than regular SBA loans
Low-interest rates
Accepts fair credit

Cons

Funding takes longer than other types of online loans

Why We Chose SmartBiz For Veteran Business Loans

SmartBiz is the #1 facilitator of SBA loans under $350K. That’s probably because this lender offers online SBA loans with a fast turnaround time, an easy application process, and low interest rates. Loan offerings include SBA Working Capital and Debt Refinancing Loans, Bank Term Loans (non-SBA loans), and SBA7(a) Commercial Real Estate Loans.

SmartBiz is a smart choice for veterans who want to get an SBA loan but are frustrated by the lengthy signup process and want a faster turnaround—as soon as a week. SmartBiz can determine your loan eligibility in just a few minutes.

SmartBiz Rates & Fees

Interest rates on SmartBiz SBA loans range from 10.75% – 11.75% with a 10-year repayment term. Loan amounts range from $30,000 to $350,000.

SmartBiz Eligibility Requirements

SmartBiz loans are most appropriate for established veteran-owned businesses with at least fair credit (650 FICO) and 2 years in business. SmartBiz also says most of its approved businesses have annual revenues of $50,000 to $5 million and are profitable with positive cash flow.

OnDeck: Best Short-Term Loans For Veterans

OnDeck

Total Rating	3.9
Rates & Fees4.6 Pricing 5.0 Affordability 4.2
Services2.9
Eligibility Requirements3.8
Application4.5
Sales & Advertising Transparency3.8 Sales Practices 4.0 Web Presence 3.5
Customer Service4.1
User Reviews4.0

Pros

Same-day funding
Accepts fair credit
Lower costs on repeat loans
Term lengths can be as long as 2 years

Cons

High APRs

Why We Chose OnDeck For Veteran Business Loans

OnDeck is America’s largest small business lender with 15+ years in the industry. OnDeck specializes in short-term business financing, offering short-term loans up to $250,000 and lines of credit up to $100,000. Borrower qualifications are far less stringent than those of banks; veterans with fair credit can easily qualify as long as they have strong business credentials.

OnDeck’s loans typically aren’t the cheapest, but they are quite fast—you can potentially get the funds to expand your vet-owned small business within just 24 hours, or even the same day you apply. Startups should look elsewhere for financing, as OnDeck will not lend to businesses that have been operating for less than a year.

OnDeck Rates & Fees

OnDeck APRs start at 29.9%, but the average borrower’s APR is closer to 50 or 60%. OnDeck’s fees include both interest on the loan as well as an origination fee that’s taken off the top of the loan. The origination fee may be waived on subsequent loans.

OnDeck Eligibility Requirements

OnDeck requires a 625 FICO, 1 year in business, and $100K annual business revenue. You also need to have a business checking account.

Get Started With OnDeck

BusinessLoans.com: Best Loans For Veterans With Established Businesses

BusinessLoans.com

Get Started With BusinessLoans.com

Total Rating	4.0
Rates & Fees4.6 Pricing 4.3 Affordability 5.0
Services4.0
Eligibility Requirements4.1
Application3.0
Sales & Advertising Transparency3.6 Sales Practices 3.0 Web Presence 4.4
Customer Service4.1
User Reviews4.4

Pros

Get funded up to $3M as fast as same day
Multiple types of financing available
No minimum credit score to apply

Cons

No information about rates on company website
Some loans take up to a week

Why We Chose BusinessLoans.com For Veteran Business Loans

BusinessLoans.com is a business lending marketplace that allows you to apply for and compare multiple lenders at once. Though BusinessLoans.com has options for bad credit businesses and newer businesses, most loans offered through the service are better suited to veterans with established businesses. If you meet the borrower criteria, you will have many options to choose from at this one-stop-shop for veteran business loans.

BusinessLoans.com Rates & Fees

Since BusinessLoans.com works with many different lenders, your rates and fees will vary depending on which lender you choose. Using the lending marketplace itself is free.

BusinessLoans.com Eligibility Requirements

BusinessLoans.com has no stated minimum credit score, time in business, or business revenue requirements to apply for funding. However, most loans available through the service require at least 1 year in business and $75,000 in annual revenues.

Credibly: Best Small Business Loans For Veterans With Bad Credit

Credibly

Get Started With Credibly

Total Rating	3.6
Rates & Fees3.1 Pricing 3.7 Affordability 2.4
Services3.7
Eligibility Requirements3.3
Application4.0
Sales & Advertising Transparency3.6 Sales Practices 3.0 Web Presence 4.5
Customer Service4.3
User Reviews4.0

Pros

Accepts poor credit
Multiple financing types available
Discounts for repaying early
Daily, weekly, & monthly repayment options

Cons

Fees can be high

Why We Chose Credibly For Veteran Business Loans

Many veterans leave the military with low credit scores because their careers have prevented them from participating in credit-building activities, such as paying off a mortgage. Credibly is one of the few reputable small business lenders that might lend your business capital even if you have poor credit.

Credibly is an online lender offering short-term working capital loans, business lines of credit, merchant cash advances, equipment loans, invoice factoring, and more. Credibly is fast and reliable, offering multiple bad credit business loan options for veteran businesses.

Credibly Rates & Fees

Credibly offers mostly short-term financing products, whose total cost is normally calculated using something called a factor rate. In Credibly’s case, factor rates start at 1.11.

Credibly Eligibility Requirements

Credibly requires a minimum $15,000 monthly business revenue ($180,000 per year), 6 months in business, and a minimum credit score of 500. (Some Credibly products may have stricter eligibility requirements; these minimums apply to working capital loans and merchant cash advances.)

Fundbox: Best Loans For Veterans With Startup Businesses

Fundbox

Total Rating	3.8
Rates & Fees3.1 Pricing 2.3 Affordability 3.8
Services3.6
Eligibility Requirements4.5
Application4.8
Sales & Advertising Transparency3.8 Sales Practices 4.0 Web Presence 3.5
Customer Service3.0
User Reviews4.4

Pros

Startup-friendly
Accepts subprime credit
Apply and draw funds using Fundbox mobile app
No prepayment penalty

Cons

Low max. borrowing amount

Why We Chose Fundbox For Veteran Business Loans

Fundbox offers an easy-to-qualify-for business line of credit. A line of credit is useful for veteran businesses with ongoing working capital needs, since you can draw from it whenever you need funds and your line replenishes as you repay.

And while most business lines of credit require at least a year or two in business, Fundbox will in some cases accepts businesses newer than 6 months. Fundbox is also suitable for startups with bad credit.

Fundbox Rates & Fees

Fundbox repayment takes place weekly, with a maximum term length of 24 weeks. Estimated fees on Fundbox’s loan calculator are listed at 4.66% for 12-week terms and 8.99% for 24-week terms. You can choose your term every time you make a draw, and you will see the total cost and schedule of each repayment upfront.

Fundbox Eligibility Requirements

Fundbox requires a credit score of 600 (which is lower than most other LOCs) and $100K in annual business revenues. Fundbox prefers applicants have at least 6 months in businesses, but will sometimes accept less.

Get Started With Fundbox

Bluevine: Best Fast Loans For Veteran-Owned Businesses

Bluevine

Get Started With Bluevine

Total Rating	3.6
Rates & Fees3.5 Pricing 3.1 Affordability 3.8
Services3.6
Eligibility Requirements3.3
Application4.5
Sales & Advertising Transparency3.4 Sales Practices 4.0 Web Presence 2.5
Customer Service3.4
User Reviews3.4

Pros

Same-day funding
Larger LOC than Fundbox or OnDeck
Competitive rates

Cons

Borrower qualifications may be difficult to meet

Why We Chose Bluevine For Veteran Business Loans

Bluevine is a little harder to qualify for than the other LOC lenders on our list, but qualified veteran-owned businesses can borrow larger amounts with Bluevine—up to $250K. Bluevine is also extremely fast, offering same-day loans. Once Bluevine approves your application—your initial pre-approval decision will take about 5 minutes—you can have funds deposited in your bank account within a few hours, provided that you choose the $15 bank wire option.

Additionally, Bluevine offers longer term lengths than other online business lines of credit (6 or 12 months).

Bluevine Rates & Fees

Bluevine APRs range from 15-78%. Bluevine charges interest on each weekly repayment but there are no monthly fees, and you can repay your draw early at no penalty.

Bluevine Eligibility Requirements

Bluevine requires 2 years in business, a credit score of 625, and $40,000/month in business revenues.

Business Loan & Funding Products Review Methodology

We spend hours researching and evaluating each business loan and funding product that we review at Merchant Maverick, placing special emphasis on key characteristics to generate our ratings.

When rating lenders and funding providers, we use a 31-point rubric that looks at rates and fees, services, eligibility requirements, application, sales and advertising transparency, customer service, and user reviews. We weigh each section differently to calculate the total star rating. This rubric is applied to traditional term loans, as well as short-term loans, start-up loans, lines of credit, online lending products, merchant cash advances, and equipment financing products.

Rates & Fees: 20% of the total star rating
Services: 20% of the total star rating
Eligibility Requirements: 20% of the total star rating
Application: 15% of the total star rating
Sales & Advertising Transparency: 10% of the total star rating
Customer Support: 5% of the total star rating
User Reviews: 5% of the total star rating

Each section is further broken down into granular, weighted subsections, in which we examine specific attributes like terms lengths, conditions of repayment, credit score and revenue requirements, ease of application, length of time to funding, the ethics involved in promoting the lending product, customer support, and the overall reputation of the lender or funding provider.

Read more about how we rate small business lenders.

Best SBA Loans For Veteran-Owned Businesses

SBA loans for veterans have great terms and fees, though these loans are harder to qualify for and take longer to fund. The main types of SBA loans for veterans are Veterans Advantage Guaranteed Loans (which can include SBA Express loans) and MREIDL. Interested? Learn how to apply for an SBA loan.

Additional Funding Resources For Veteran-Owned Businesses

Don’t qualify for funding yet? Need more help finding options? Consider the following funding ideas for veteran-owned businesses.

Qualify For The ERC Tax Credit: If your veteran-owned business was open during the pandemic, you may be eligible for the employee retention tax credit of up to $26,000 per employee. Check out these top ERC providers to see if you qualify.
Get Certified As A Veteran-Owned Business: Getting certified as a veteran-owned business can increase your appeal to lenders and win federal contracts; service-disabled veteran-owned businesses may qualify for a separate federal contracting program.
Contact Your Bank Or Credit Union: You may be able to obtain a business loan through your bank or credit union if you already have a good business relationship with them.
Look Into Nonprofit Lenders: One example of a nonprofit lender for veterans is the Veterans Business Fund.
Look Into Angel Investors: These organizations can help your veteran-owned business obtain startup funds. Example: Hivers and Strivers.
Research Business Grants: See if you qualify for any business grants for veterans—for example, there are special grants for veteran farmers and grants for veteran franchise owners.
Contact Your Local SBA Office: They may be able to provide additional information on programs for veteran business owners. The Office of Veterans Business Development, SCORE, and Boots to Business are all SBA-powered programs that offer business training and mentoring to veterans.
Consider Non-Government Resources: Some examples of non-government resources for veteran business owners include VetToCEO, the Global Good Fund, and the Coalition for Veteran-Owned Businesses.

How To Get A Veteran Business Loan

1) Draft A Business Plan

Most lenders will want to see a business plan so they know what you plan to do with the funds you’re asking for before they lend you money. Don’t have an updated business plan? Learn how to draft a one-page business plan.

2) Check Credit Score

Make sure you know your credit score is so you don’t waste time applying for loans you don’t qualify for based on your credit. In addition to checking your personal credit score with the Equifax, Experian, and TransUnion credit bureaus (you’re entitled to one free credit report from each of these agencies, per year), also be sure to check your business credit score.

3) Calculate Loan Size

How big of a loan do you need and why? What size daily or weekly payments can you afford? How big of a loan will you qualify for, taking into account your business’s debt service coverage ratio (DSCR)? It’s important to know if you can afford a small business loan before applying.

4) Gather Documents

Gathering all your important business documentation ahead of time will help save time when applying. Make sure you have the documents you need to get a small business loan.

5) Bolster Online Presence

Lenders will often check your business’s website, social media, and online reviews when making lending decisions. All of these elements together make up your online presence.

6) Compare Qualifying Lenders

Once you know your funding needs and what loans you qualify for, it’s time to compare small business lenders. Pay attention not just to the maximum loan amounts and the fees, but also to the repayment frequency and term length since these factors will make a big impact on your payments.

7) Start Applying

If you are well-prepared by taking the above actions, applying for loans should go pretty smoothly. You’ll simply need to prove you can meet the borrower requirements for the loan you want, supplying all the needed documentation you gathered earlier.

Which Loan Is Right For Your Veteran-Owned Business?

To determine which small business loan is right for your veteran-owned business, first consider your qualifications, including time in business, credit score, and business revenues, and see which lender(s) you qualify for. You’ll also want to consider which lenders can offer the amount of funding you need, with a payment schedule you can afford.

Don’t qualify for any veteran business loans? Look into business grants for veterans.

FAQs About Veteran Business Loans

Does the VA give small business loans?

No, the U.S. Department of Veteran Affairs (VA) does not offer small business loans to veterans. However, the U.S Small Business Administration (SBA) offers a number of programs — loans and otherwise — to help veterans and active servicemembers.

How much of a business loan can a veteran get?

Your approved business loan amount will depend on a variety of factors, including the type of veteran-owned business you own, your credit score, length of time in business, and annual revenue.

To give you a rough idea, qualified applicants can receive up to $5 million with an SBA loan, or up to approximately $500,000 with an online loan.

What credit score is needed for a VA business loan?

That depends on the lender and loan type you wish to qualify for, as well as your business type and other eligibility factors. On average, most loans to qualified veteran-owned businesses require a credit score of at least 600 or higher.

What is the interest rate on a VA small business loan?

Interest rates on veteran business loans depend on various factors, including the lender, the loan amount, the current Prime Rate, your credit score, and more. The lowest business loan interest rates are available from SBA-affiliated banks, while interest rates for online veteran business loans and business loans for veterans with bad credit are much higher.

In general, interest rates for veteran business loans can range from about 5.5% to more than 100%.

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Shannon Vissers

Lead Staff Writer at Merchant Maverick

Shannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.

@ShannonVissers

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Latest posts by Shannon Vissers (see all)

Next-Day Funding Merchant Services - November 20, 2023
How To Write A Business Plan For A Loan - July 12, 2023
How To Check SBA Loan Status - April 25, 2023
Using Lightspeed Loyalty For Retail Success - January 18, 2023
SBA 8(a) Program & Eligibility Requirements - July 18, 2022

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1. SmartBiz

❮ ❯

Offers: Online SBA loans
Interest: 10.75-11.75%
FICO: 650

2. OnDeck

❮ ❯

Offers: Short-term loans & lines of credit
APR: 29.9%+
FICO: 625

3. BusinessLoans.com

❮ ❯

Offers: Short-term loans, lines of credit, & more
APR: Unknown
FICO: N/A

4. Credibly

❮ ❯

Offers: Short-term loans, lines of credit, & more
Factor Rate: 1.11+
FICO: 500

5. Fundbox

❮ ❯

Offers: Lines of credit
APR: 4.66%+
FICO: 600

6. Bluevine

❮ ❯

Offers: Lines of credit
APR: 15-78%
FICO: 625